Panama: $650 Million for Northern Corridor

The government of Panama will have to pay $650 million to acquire 100% of the shares of the highway known as “Northern Corridor”.

Dulcidio de la Guardia, the country’s finance vice minister, announced that this figure has been agreed between the government and Pycsa, the highway’s concessionaire. However, the transaction has not been closed yet.

“A little more than 50% of the purchase will be financed by Pycsa itself through a 10-year bond”, reported Prensa.com. “The other $300 million will be paid with money from the FFD (a state trust fund for developing the country) and reserves from the Social Security Institute (CSS), if approved by its board”.

It has been announced that the purchase of the highway from the Mexican company PYCSA by the Panamanian State will be completed in July and funded by issuing bonds.

Negotiations for the purchase of the Northern Corridor from PYCSA should conclude in July with payment of 80% of the shares, said Rigoberto Effio, administrative and financial manager of the Empresa Nacional de Autopistas (ENA).

An intricate relationship between the companies who own the raises questions about its purchase by the National Company of Motorways of Panama.

The newspaper La Prensa had access to a note addressed to the Ministry of Economy and Finance, in which Messrs. John, George and Javier Melgarejo Haddad point out that the transaction could suffer because of a lack of "legal effectiveness".

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